Save Article

Option Bulls, Bears Converge
As Stocks Approach Juncture

NEW YORK -- The options market saw a mix of precautionary hedging and bullish positioning, reflecting the varied views as investors evaluated stocks' recent push to three-month highs.

With the Standard & Poor's 500-stock index climbing above 900, investors who see capped upside sold calls to earn premiums. Others sold stock that had recently run up to lock in gains, replacing them with calls to maintain upside exposure. Traders noted brisk call trading this week in financial stocks such as J.P. Morgan Chase, and in...